London rents double the national average

Thu 27th February 2014, 12:11 pm

Residential rents in London are more than twice those in the rest of the country, analysis shows.

According to mortgage provider BM Solutions, the average rent in the capital is £1,417, while the national average is £701.

Average rental yields across the country have dropped from 5.6 per cent in 2012 to 5.5 per cent in 2013, with London properties showing the lowest yield: 4.4 per cent on average.

BM Solutions head of sales Phil Rickards said: "Demand for rental accommodation remains strong, and in many regions this is outstripping supply which can lead to an upward pressure on rent prices.

"However, our figures show that even with increasing rents, the average yield that investors are getting has remained static, which will be driven by the fact that the average price of a typical buy-to-let property has grown marginally faster than average rents."

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